CMP Product Development and Management 2

Question 1

In the BCG Growth-Share Matrix, a product with high relative market share in a low-growth market is classified as a:

Accepted Answer

Cash Cow

Answer

Star

Answer

Question Mark

Answer

Dog

Question 2

What is the primary purpose of concept testing in new product development?

Accepted Answer

To evaluate consumer reactions to a product idea before physical development begins

Answer

To manufacture a trial batch of products for sampling

Answer

To test the product's durability under real-world conditions

Answer

To finalize the product's price before launch

Question 3

Which pricing strategy is commonly used when launching an innovative new product to quickly recover R&D costs by charging a high initial price?

Accepted Answer

Price skimming

Answer

Penetration pricing

Answer

Cost-plus pricing

Answer

Competitive parity pricing

Question 4

What does 'product mix width' (also called product breadth) refer to in portfolio management?

Accepted Answer

The number of different product lines a company offers

Answer

The number of items within a single product line

Answer

The quality range within one product line

Answer

The geographic reach of a company's products

Question 5

During which new product development stage is the product first introduced to real customers in a limited geographic market to gauge genuine consumer response?

Accepted Answer

Test marketing

Answer

Business analysis

Answer

Prototype development

Answer

Commercialization

Question 6

In the BCG Matrix, a product with low relative market share in a high-growth market is classified as a:

Accepted Answer

Question Mark

Answer

Cash Cow

Answer

Star

Answer

Dog

Question 7

What does the 'diffusion of innovation' framework primarily illustrate?

Accepted Answer

The rate at which different consumer segments adopt a new product over time

Answer

How quickly competitors can reverse-engineer a new product

Answer

The decline in product quality as it moves through the lifecycle

Answer

How negative word-of-mouth spreads across market segments